Takeaways
- Gold will remain a focus for investors after the metal surged to new highs last week. Investors flocked towards the safe-haven investment amid the uncertainty about tariffs, and their impact on global economies.
- Gold’s price continued its strong upward trend, breaking above the pattern on Friday’s trading session.
- The measuring principle forecasts an upside potential in precious metals of $3.380.
- Investors should monitor key support levels on gold's chart around $3,170, $3,048, $2,955, and $2,858.
Investors will continue to focus on gold (XAUUSD), after it surged to record highs in the past week. They flocked to this safe-haven asset due to the ongoing uncertainty surrounding tariffs and the impact they have on the global economy.
The precious metal is still supported by concerns over an intensifying trade war, which continues to put downward pressure on the US dollar and Treasurys. This is due to the decreasing trust in the U.S.
Gold’s price, up 6% in the past week and 23% since the beginning of the year, fluctuated Sunday evening as investors digested the news that the recently announced U.S. exemptions from tariffs on smartphones and computers, as well semiconductors, could only be temporary. The president then promised a national-security trade investigation into the chip industry.
Below, we examine the price movement of gold and identify the key levels that investors might be looking out for as they prepare for the potential for yet another week of tariff-driven instability.
Ascending Breakout Channel
Gold’s price continued its strong upward trend, breaking above the pattern on Friday’s trading session.
Despite the commodity moving into price discovery mode a bearish divergence between the relative strength (RSI) index and price has formed, indicating easing purchasing momentum.
Let’s apply technical analyses to the gold chart. This will help us identify a potential target for upside to monitor, as well as several key support levels to watch during pullbacks.
Monitors with Upside Price Target
Investors can forecast an upside target by using the measuring principle. Chart watchers also call this technique the measured move.
We add $200 to $3,180 to get a target of $3,380. This is 4% above the current trading levels. We can add $200 to $3180, which will give us an upside target of about $3380, or 4% higher than the current trading levels.
Key Support Levels to Watch
The first level to watch is around $3,170. This area of the chart may offer support near the peak in early April, which also marks the commodity’s former record high.
A close below this level could see the price return to support at $3,048. Investors could look for entry points near a minor peak in March that preceded a short dip later that same month.
The next level to watch is $2,955. This region could see a spike in buying interest near the trough of early April, which is also close to the February peak.
Finaly, if bullion bulls fail to defend this level, it may cause a significant drop to $2,858. Investors can look for purchasing opportunities near the late-February low on the chart.
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As of the date of this article, the author did not own any securities listed above.
